Both UPI (Unified Payments Interface) and IMPS (Immediate Payment Service) are popular real-time payment systems in India. Here’s a quick comparison:
- Platform & Interface:
- UPI: Mobile-first, allows transfers via UPI IDs or phone numbers, integrates with third-party apps like Google Pay, PhonePe, etc.
- IMPS: Primarily used for bank account transfers, requires account details or MMID, accessed via banking apps or net banking.
- User Experience:
- UPI: Streamlined and user-friendly, requires minimal banking details, ideal for peer-to-peer and retail transactions.
- IMPS: More formal, needs detailed banking information like account numbers and IFSC codes.
- Interoperability:
- UPI: Highly interoperable, no need to know the recipient’s bank account details.
- IMPS: Limited interoperability, requires specific bank account information.
- Transaction Limits:
- UPI: Typically up to ₹1 lakh per day (varies by bank).
- IMPS: Higher limits, generally ₹2-5 lakhs, depending on the bank.
- Fees:
- UPI: Mostly free or minimal charges, especially for merchants.
- IMPS: Small fees may apply, depending on the bank and transaction amount.
- Ecosystem:
- UPI: Integrated with a broad ecosystem, supports bill payments, QR transactions, and more.
- IMPS: Primarily used for inter-bank transfers via banking platforms.
- Adoption:
- UPI: Widely adopted for small payments, person-to-person transfers, and retail purchases.
- IMPS: Commonly used for higher-value inter-bank transfers.
In conclusion, UPI is ideal for everyday, small-scale transactions with its simplicity, while IMPS is preferred for more formal, high-value transfers between bank accounts.